Elon Musk’s America Party and Big, Bad, Breakup with Trump

Elon Musk, the billionaire entrepreneur behind Tesla and SpaceX, has shaken U.S. politics by announcing the formation of the “America Party". He announced this after months of tensions and social media war with former bromance buddy, President Donald Trump.

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What Led to the America Party?

Musk was once a major Trump ally, donating over $250 million into supporting Trump's presidency and other Republican candidates. However, their relationship soured when Musk and Trump disagreed with what Trump called the "One Big, Beautiful, Bill" which Musk criticized, warning it could “bankrupt the country.”

By early July, Musk conducted polls on X (formerly Twitter), asking users if they wanted independence from the two-party system. With a factor of 2 to 1 in favor, he officially launched the America Party on July 5.

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Donald Trump’s Response

Trump wasted no time in attacking Musk, dismissing the new party as “ridiculous” and insisting that the U.S. must maintain its two-party system. On Truth Social, Trump called Musk a “TRAIN WRECK”, accusing him of going “off the rails” and threatening repercussions for his businesses, including the loss of federal subsidies and contracts.

The former president also cancelled a NASA nomination for Musk ally Jared Isaacman and hinted at canceling billions in government support for SpaceX and Tesla.

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Effect on Tesla’s Stock

The announcement triggered an immediate drop in Tesla’s stock, erasing around $68 billion in market value. Analysts warned that Musk’s political ambitions could distract from Tesla’s business, even as the company faces challenges in autonomous driving and slowing EV sales due to cheaper competition.

Investors also fear retaliation as Trump has threatened to eliminate EV tax credits, an incentive for Tesla buyers. With Tesla’s stock already struggling in 2025, Musk’s entering into politics adds another layer of uncertainty.

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Effect on U.S. Politics

Divided Republican Party

Musk’s Big, Bad, Breakup with Trump puts him puts a division in the Republican Party. The America Party could divide votes among Republicans in key races. This might be a benefit to the Democrats.

A Third-Party Has Not Won in the US

Unlike in our country where political parties sprout like mushrooms, in the US third parties has not won historically. Ross Perot tried it in 1992 without much success. It's just not that easy to wrest power from the two parties.

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Conclusion

Elon Musk’s feud with Donald Trump is a dramatic moment in U.S. politics. Trump has responded angrily and threaten retaliation. Meanwhile, Tesla’s business and stock price continue to tumble.

If Elon can use his wealth and influence to turn votes to candidates he support, then this is bad news for the Republicans. The Democrats maybe celebrating now but they are not safe too. Either way, the 2026 midterms just got a lot more unpredictable. The US politics suddenly turned into a One Big, Bizarre, soap opera. Let's see how this plays out.

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